Bonds Flat As Yellen Underscores Fed’s Commitment, Data Dependence

By Michael Aneiro

Bonds didn’t budge as Fed Chairwoman Janet Yellen gave a lunchtime speech and answered questions at the Economic Club of New York today. Yellen generally underscored the Fed’s data-dependence and its commitment to keeping rates low as long as needed to aid the economid recovery. Yellen said she sees excessively low inflation as more of a worry than rising prices, and said both inflation and the labor market were not where the Fed wanted them to be before it considers raising short-term rates, something markets expect to happen sometime toward the middle of next year.

Bonds showed barely any reaction while Yellen spoke, with both the 10-year and 30-year Treasuries down 3/32 in price to yield 2.641% and 3.497%, respectively, per Tradweb data.

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